Child Poverty as a Determinant of Life Outcomes: Evidence from Nationwide Surveys in Japan

We attempt to examine the extent to which poverty in childhood adversely affects success in adulthood, using micro data from nationwide surveys in Japan and taking into account the recursive structure of life outcomes. We use retrospective assessments of income class at the age of 15, because longitudinal data on household income are not available. After controlling for its endogeneity, we confirm that children from poor families tend to have lower educational attainment, face higher poverty risks, and assess themselves as being less happy and as suffering from poorer health.